Monopolistic competition with a mail order business *
نویسنده
چکیده
I analyse free-entry competition between stores and mail order businesses. Consumers purchasing at stores entail distance related transportation costs. Purchase from a mail order business (MOB) involves a fixed cost. Compared to Salop’s model [Salop, S.C., 1979. Monopolistic competition with outside goods. Bell Journal of Economics 10, 141–156], fewer firms are active with free-entry. At most one MOB enters. 2000 Elsevier Science S.A. All rights reserved.
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